(Bloomberg) --
A build-up of petroleum trucks at Uganda’s border with Kenya has caused a spike in gasoline prices by almost 50% in parts of the capital, Kampala, in the past two weeks.
The gridlock resulted from mandatory Covid-19 tests at entry border points introduced at the start of the year that is now holding the trucks for about 10 days in a queue, the Energy Ministry said in a statement. Previously, Uganda allowed drivers entry with negative results for tests taken elsewhere.
Gasoline prices in Kampala jumped to as much as 6,630 shillings ($1.88) per liter from 4,480 shillings. The leap is from speculators hoarding products and prices should not exceed 5,000 shillings per liter, according to the statement.
The government has been offering free testing since Jan. 12 and the pace of clearing trucks has now picked up, the ministry said. A malfunctioning scanner also worsened delays, Energy Minister Ruth Nankabirwa Ssentamu said on Twitter.
Landlocked Uganda imports most petroleum products by road through Kenya and consumes an average 6.5 million liters (1.7 million gallons) of fuel daily.
The nation that’s developing its oil fields in the west will have control over fuel prices once production starts in 2025, Ssentamu said.
©2022 Bloomberg L.P.
Advertisement